Bill to reduce medical tort claims in Oregon gets bipartisan support

In a state Capitol meeting room, Gov. John Kitzhaber talks to reporters and newspaper editors about his goals for the upcoming legislative session. Don Ryan/AP

SALEM -- Gov. John Kitzhaber said Tuesday that a bill is in the works that could reduce the number of medical malpractice lawsuits in Oregon and fulfill a promise he made to get his Medicaid reforms through the Legislature last year.

Under his proposal, which he said has gotten the needed sign-off from trial lawyers and doctors, patients who think they were wronged by a doctor would get a chance at mediation -- and a settlement -- without going to court. The governor said similar laws have worked in other states.

The program would be voluntary, and suing for damages would remain an option. But experiments elsewhere show it can save time and money, Kitzhaber said.

The University of Michigan's health system has tried it "with a significant reduction in medical liability cases," Kitzhaber said. The law also helped improve medical practices there, he said.

The governor made his comments during a meeting with statewide newspaper editors, one day after he outlined his legislative agenda to a joint meeting of the House and Senate.

Last year, as Kitzhaber was trying to move forward with sweeping, money-saving health care changes, a group of 15 senators wrote a letter saying they would block his reforms unless he agreed to a law limiting medical liability damages to $566,700. The letter said a reformed system would have problems attracting doctors without caps on medical malpractice awards.

Kitzhaber eventually prevailed, in part by promising to set up a task force to come up with tort reform legislation for 2013.

Sen. Jeff Kruse, R-Roseburg, was one of those who signed the letter last year and then became a member of the task force. The proposal isn't perfect, he said, but he's ready to support it.

"It is a small step in a direction a lot of us would like to go," Kruse said. "It's a long way from tort caps."

Republicans and doctor groups have long sought to put a limit on the amount of money injured patients could receive from successful medical malpractice claims. Democrats, along with trial lawyers, generally opposed such caps.

The conversation changed, however, when Kitzhaber moved forward with new rules for the Oregon Health Plan, which put Medicaid clients under newly formed Coordinated Care Organizations. The CCOs are supposed to oversee physical, mental and dental care for each client as a way to prevent expensive hospitalizations.

Representatives from the Oregon Trial Lawyers could not be reached for comment Tuesday afternoon. Bud Pierce, president of the Oregon Medical Association, said he expects his group to give the bill its blessing when the board of trustees meets later this month.

"A lot of us who practice want to try to move medical errors and discussions out of the courtroom and into a setting where there can be discussions and openness," Pierce said. Out of that kind of process, he said, "will come transparency and safety."

Kruse said the new bill gives patients and doctors a "safe harbor" to try to negotiate a settlement without jeopardizing any potential future litigation. He expects a majority of cases to settle without a trial, which could vastly reduce doctors' financial exposure.

It also gives doctors a chance to recognize and correct medical errors, leading to better overall results.

"That's the theory," Kruse said. The task force will remain in place to continue to work on the law and tweak it as necessary, he said.

Kruse said he is working with Sen. Floyd Prozanski, a Eugene Democrat, to get the bill in shape and begin moving it by the second week of the legislative session. Lawmakers are scheduled convene in Salem on Feb. 4.